Question

In: Economics

. A firm uses the inputs of fertilizer (sacks), labor and hothouses to produce roses. Suppose...

. A firm uses the inputs of fertilizer (sacks), labor and hothouses to produce roses. Suppose that when the quantity of labor and hothouses is fixed, the relationship between the quantity of fertilizer (F) used and the number of roses (TP) produced is given by the following table.

F TP AP_F MP_F

0 0

10 1,100

20 2,200

30 4,800

40 7,600

50 9,800

60 11,600

70 12,200

80 11,800

90 11,000

Is this a short run or long run production function? Explain,

Derive the average and marginal product of fertilizer schedules.

At what point is maximum production efficiency confronted? Explain.

At what point is diminishing returns confronted? Explain.

At what points do stages I, II and III of production begin and end? Explain.

Try to do all pls and thank you

Expert Solution

Using,

and

Quantity of fertilizer	Total product(TP)	Average Product(AP)	Marginal Product(MP)
0	0	0	0
10	1100	110	1100
20	2200	110	1100
30	4800	160	2600
40	7600	190	2800
50	9800	196	2200
60	11600	193.33	1800
70	12200	174.28	600
80	11800	147.50	-400
90	11000	122.22	-800

When at least one fixed resource is there to firm, than this is case of short-run.

Since, the quantity of labor and hothouses is fixed , than this is the case of short-run production function.

For all other parts do refer to this graph,(Using Law Of Variable Proportions)

Rahul Sunny answered 1 year ago

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